The Cookie Man and Kenny’s Cardiology franchise holder Allied appointed administrator Vincents Chartered Accountants after creditors withdrew from talks with the company after lost its licence to operate 92 Baskin Robins ice-cream stores in Australia.

The company has been plagued by profit downgrades, and announced plans to close 15 of its 46 Kenny’s stores in June.

It delivered another downgrade in July and said writedowns on Cookie Man and Villa & Hut, in addition to store closures, had caused an increased in the forecast impairment charge to between $30 million and $32 million, up from its previous forecast of between $13 and $15 million.

The company had been seeking to raise funds through a convertible bond issue and equity line of credit, but its situation took a turn for the worse after losing the famous ice-cream brand.

The company said its operations had been severely affected when Baskin Robbins’s owner, Dunkin Brands, terminated Allied’s master franchise agreement late last month, prompting Westpac Banking Corporation to appoint McGrath Nichol as receivers and managers of Allied.

Allied shares entered a trading halt on September 24 after The Cookie Man was placed in liquidation by the Supreme Court.

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The stock has tumbled more than 90 per cent from a 12-month high of 19 cents reached on December 23.

Its shares – which were suspended from trade on Thursday - last traded at 17¢.

Some analysts have said Allied Brands is a lower-quality investment than rivals such as
Retail Food Group
, as it is not generating free cash flow.

The multibrand franchisor had hoped more acquisitions and stronger same-store sales growth could boost earnings and lift its sagging share price.

Allied acquired the four Victorian Coffee Bean and Tea Leaf stores of Bennett Investments with $150,000 of its own cash in February. As part of its Franchise Services Division that was established in December 2009.

Ex-chief executive Sean Corbin, brought in as CEO several months ago, said recent purchases had proved costlier than expected.

Vincents Chartered Accountants partner Peter Dinoris said the first creditors meeting will be held November 8.

The directors of Krispy Kreme Australia appointed Mike Smith and Peter Hillig of accountancy firm Smith Hancock as joint voluntary administrators of the company on Friday.

The board is expected to present a restructuring plan to Smith Hancock in coming weeks as part of an attempt to make the company more financially stable.